The Gazette from Montreal, Quebec, Canada • 33

HOW THEY CLOSED Wat datette TSE 9348.36 46.14 CDNX 3237.54 18.16 DOW 10,881.20 179.01 NASDAQ 2838.35 0.01 GOLD (N.Y.) $265.50 $2.70 DOLLAR 66.53 PRIME RATE 7.50 unch SECTION Technology D3 Trading Highlights DU Careers D9 See World Markets on Page D4 BUSINESS EDITOR: DAVID YATES (514) 987-2512 WEDNESDAY, JANUARY 31, 2001 Ciiiar siigs Its founder 1 li i If 1 a The suit alleges Cinar claims that company funds were used in the following transactions: $23,3 15 to buy a piano for the Westmount home of Charest and Weinberg. $65,000 U.S. in private-school fees for a son of Weinberg and Charest. The couple have two sons. $250,000 U.S.

used by Weinberg and Charest for personal investments. $939,1 1 1 for renovations or other work on homes and a condominium owned by Charest and Weinberg. $373,276 used to pay salaries and other benefits, including a car and stock options, to personal employees, such as a housekeeper and gardeners. $299, 1 37 received by Helene Charest, sister of Micheline Charest, for scripts she did not write. 1 98.500 used to purchase a house in Howick, which was then rented to Cinar by Charest and Weinberg's holding company.

The house was used as location in Cinar productions, for which the company was billed $650,000, or $26,000 a month. When filming ended, the holding company sold the house. Between Dec. 1, 1996, and Feb. 16, 2000, Charest made 70 investment transactions, using $38.5 million in company funds, some of which has been repaid.

Between June 26, 1 996, and Feb. 1 1, 2000, Cinar made 45 payments, totaling $11.8 million, to investment accounts, brokers and advisers for Hasanoin Panju. $399,325 in renovations made to a home owned by Ponju's wife in Richmond Hill, Ont. $28-million suit alleges Charest, Weinberg, and ex-CFO used firm like private bank MARY LAMEY The Gazette Embattled Cinar Corp. is suing its three former top managers to recover $28.6 million, saying the trio treated the company's coffers like their own private bank.

Named are the husband-and-wife team Ron Weinberg and Micheline Charest, Cinar's founders and former co-chief executive officers, as well as Hasanain Panju, formerly the company's chief financial officer. All three were dismissed last March, when auditors discovered $122 million had been invested offshore without the approval of the company's board of directors. For months, the film-and animation producer has been struggling to prepare audited financial statements for 1999 and to restate results for 1997 and 1998, but has been hampered by unanswered questions about related-party transactions Involving the three former top executives. The suit sheds light on the allegations of inappropriate dealings among the three. "Over a period of at least six years, Ronald A.

Weinberg, Micheline Charest and Hasanain Panju, acting in concert, both directly and through companies they controlled, wrongfully and covertly appropriated and used and misused assets of the plaintiffs, and otherwise acted improperly for their personal benefit, thereby causing substantial loss and prejudice to the plaintiffs." the 47 page suit alleges. The lawsuit names as defendants four companies owned Jointly or Individually by Charest, Weinberg and Panju. The list of plaintiffs includes four Cinar subsidiaries. t.1::;: i CP Cinar co-founders Micheline Charest and Ronald Weinbergare shown in this undated photo. In a statement last night, they said the suit comes days after they billed the company for $3.2 million.

or other amounts to relatives or employees of Weinberg, Charest. and Panju. who did not provide services to (Cinar)." according to the suit. It alleges that 1.100 of the 1,400 transactions identified were inappropriate. PricewaterhouseCoopers's review indicates that $10.9 million Is owed by Charest.

Weinberg and their companies. $11.3 million Is owed by Panju and. $6.3 million Is owed by the three combined. Please see CINAR. Page D3 March, PrlcewaterhouseCoopcrs, uncovered 1,400 financial transactions between the defendants and Cinar, or between the defendants and third parties.

"Many of these transactions involved the appropriation or use of Cinar funds for personal Investments for the benefit of Weinberg. Charest and Panju. and the appropriation or use of plaintiff's funds for renovations or other work or expenditures on the homes of Weinberg. Charest or Panju. their personal expenses, and the payment of salaries "We have been working diligently and cooperatively over the last several months with the company and its advisers on many different Issues.

Most recently at the urging of the company and its advisers, we have been meeting with Merrill Lynch and have been actively involved in helping them in their efforts as financial advisers to the company We are therefore perplexed and disturbed by the tuning of the company's actions." According to the suit, during the course of a financial review begun last In a statement issued by their lawyers, Charest and Weinberg said they were reviewing the lawsuit. They said it comes days after they billed the company for SS2 million. A spokesman could not say what the bill was for. "We are surprised and extremely disappointed that the company and its advisors would react to the results of our work by taking legal proceedings against us. This is especially so when the details of the company's lawsuit essentially confirms the results of our work," said Weinberg.

PROXY WAR WITH MERCHANTS Metro management wins $83-miUion facelift for Carrefour Laval Cadillac Riirview to add CO stores DON MACOOKALO The(ktzett MM 111 II IHUML I lllll I IllllUUm I foot Eaton's wing, but decided that Its Crid structure, dating back to the mid-IDTOs, was not compatible with modern construction demand. Dy tearing It down, the developer was able lo design from a "clean piece of paper." Clouln It opened. Carrefour Laval kid five major tenants; Mira-cle Marl, Pascal Hardware, Eaton' and Simpson'. All five have disappeared, although ihe Eaton' name ha been restu-rected by changing of Ihe guard Is not tost of Cadillac Falrvlew. The rise: MARY LAM Ft ThtCazfttt Cadillac Falnlew Inc.

Ls embark" Ins on a liOmiUion tin lul of ihe Car refour Lo al. an aging dowager of its QiM-bec trapping mall enplre. Cone the Eaton's s.ort that onre len-ed a an anchor tenant for Ihe 1,2 ill ton tquar foot shopping crn-tre. In lis place will rise a 300.000-njuare-fool addition, an lmlr European style (tarden, 60 new twre and park ins tor 1 .200 additional VvhlcUi. The reason for Ihe massive overhaul simple, said Normand JiJouin.

Cadillac Painrlew' Ue presl- Tht onomy doing well ond lh region growing. hcrr room to grow. of discount and bis box store ha ftmrrd retailer 10 sharpen their focus and rethink the way developer operate mall. tUouutsaid. dnt (ea.tern CaiudU Metro Inc.

chk-f executive officer PUrrt Lwsard caned on dissident u(rnwkrt owners to pet back to busiwsa After sharrhoMffr drnlt the merchants difrat yesterday by mfitr ingthrtr numbers on the company's board. AJVr a lusty tvt month proxy wr. 63 crnt of vottna sharrholdrr uptortl a manaerment slate of director thai reduces nvrehaM sharehoUkTs to five of 15 directors. They prrvhnHly hrld vvrn board seats. "(Lrt') start directing our energies towurd fkhtinc our compn mar rather than itehting earn other." Uvwrd told wal mertina.

here a 2 hour wail fr the vmc to be counted had people tng about the presidential tiec-tk in rlvkla. liuj the merchant hoed lutte interna in turntns the Pfl4. emerging from the nwting to bitterly denounce nu crment lactic and towing to continue I he fish! tint fwt tfw-y tfwrp KxTrt plui to Kli f.ir ften Interest. -Metro Ul rwvrf be the Mkl Jean FburnW pmt-dert of tlw mrrrhant hAreh4tkT' frown, his wir rhiAln Uh rrootm "lirtU?" haw been tWrowJ and we. the nT-Chant, haw been treated Uh cmtemj by iturwiTnenl" U4rd.

whe future Uh Metro or the line In the w(e. reiterated Uial Metro Mnl sale and U. Instead, en the iratiWti.m trad, tUrt he admitted the mwy prmy fkhl hun term ma ins an ftj'i UJ-lirvt at a rmwwJ le prkm lie Mid he iU watt at Wat a fr mrmth, tfir UkUK at a run at Canadian rmrert rhain, mhkh pentf at Ul baw? to be either AAPor 5fr "There kt.f dal tor5e.he kt On ihm wtwr hand, Ihe fnenpany ha tfrnns balam- tiee1 aHrt i yean of uninterrupted grewth a stellar fal 3o trl ta ptitfi I(Kreae by 17 pef ten! fwi earn ins siwsp XT prf rent Mfirw left up II pare in the flrU quarter of 3tl. hkh trttied tx. 2X antwne in yesterday Its tl mnsetutiv quarter 4 wninc Sale Inrre! pt rent to ft tUlin.rnmiMimiH:h thrnr ret'-rJin rertl yr.

hiJf net ernis.c htiil 3D pef rent to fcu 7 (' rwi that Ttse rtr lrxr-AJ it qvfcrtery die-kV n.1 -cr iJi a r-t rent to ftHirnif reful to drr: mertharitii' rVwi fl bwt AUi "UnU is a wry buoy anl market. The eriux my I doin wvll and Ihe region growing. We have rwm la prow," fiiouin Mid. Hy artinc rxm. e're also raisin a shield acainst the thmil of Aiture cm Metro Inc.

chairman Maurice Jodolo (left) and president Pierre Lrartt they win and prt lo stay on. mentton there has been discussion with Quetc govern-merit fUwinclal InlUuf hms. Imhidtng Ihe Ciue de Depot el riaeemenl du Quebec. regArdine an invrmtment In ihe company lo ensure il remains in ttwbec hand. The merchant' fTvmp rrpresrn! 137 aTUiated creren ith a 3D percent ins share, but Just 7 per ceni of Use equif 10 a dual cLw stvwe tm turn Manaeemenl laid its Uwrd representation had to be reduced to better reflect its voting wvuhl and to IUm rum 6 rooce trvVpervlrnl directiet, tiu furaivt an executive at rtf.tlk management rrnn pany JarWowsliy tidL.

sakl Irwtt rwiJtn I sup-pet the mmhant' slate or directors twain it wsiU ha meant Ihe departure fnsro IN rrr.any of Lesard and hairman Paid tiobell. "Why take over In roanaf toetit" That rmity rUky MlMd invmtncV Mtd IXi tnmi. Mho Rrm Is Metro larrsl sharelUer with 17 per rent if CU A siiare The slate tnrhnW Ihe tikes of Ha met Parti y-rtsis rremier Pierre Marc Jfwvet. fiemrr Ul. eral finance minister An4re Hurbeau.

Pierre Umlevjr. presi4enl es Mtt tHittoa fresfelcnt of RON A and Jean Pierre Ikiff. a Bwnhant hareN4.Wr tw ao.iitlrtT!-.iwrn in Metro etk rkerJ rents yestervJaj to tZX riear Qix City (Asfikn retail la sia- Simons has agreed to k-a-4 Tft.i' sj(iare tort on Ihe old Eaton' it Oth er iareurtaee retailer iikhw CarrefiHtf LaviJ flan lo ofTr an tlesanl and upscale shefpina rmtrerurrnt. ith an links European garden large as the rink at the M.a.n Centre, he mUI The company also ftca la crease a street scape Ihe mall new addition. ith 3Df toUfis hich stre front lhal mUniC the kk of fashionable Laur ier St.

"Vni'U still be to bry everything that toacorktaU dress at farrefi.ur Laval bl you'll be dins it In an atnrherenf teste' sakl The null Is per rent lrawl and ha anniwl retail sate of about $WJ militofk ThenewetenkinUetpect ed toepen to autumn WQ. Sport EtpertsandSfanlshflothtef Zar. each troiiH occupy 3Xfl suture fret The hew retailer a Ul of 2 leTwr.ts. Mc tnrtmVn I Ailes Mo.je, the Has Soar ajl turn LTa IreiK't. rUJla Eairview kskf al Ihe of retaining I'ZW yt- JAGUAR 1 tW3J.i3Wf VDP miilWiv'l troant.

fen Sunt trjtios iH vW fit lli' QJ StrOTTJ JAGUAR IjCtyoiifMrlf Vv rx Ai -x tMvf Se i--i tit fw-. Ml I mih Vt SC Wl 1 -m mmv 1 cm mmm ewww fcs as i ul. uim I'-'iinlIH.